Press Release - Bill Newton Dunn MEP (Liberal Democrat)
www.netwon-dunn.com
Derbyshire, Nottinghamshire, Leicestershire, Rutland, Northamptonshire, Lincolnshire and the West Midlands
Telephone: 07939 250 473
Email: bill.newtondunn@europarl.europa.eu
Release Date:
12 January, 2012
Dodgy consumer credit websites face EU clamp-down
Have you ever wondered why a personal loan, credit card or auto finance offered online has turned out to be much more expensive than expected? An EU-wide investigation into more than 500 websites offering consumer credit has found that 70% (393) of sites lack at least some of the legally required information to help consumers make an informed decision. In the UK , 38 out of 47 (80%) checked websites revealed irregularities which will now be investigated further by UK Office of Fair Trading.
Commenting after the publication of the initial findings of the 2011 EU Consumer Credit investigation, East Midlands Euro-MP Bill Newton Dunn, said:
“At a time when families are struggling and the effects of the credit crunch are still being felt across the country, it is of paramount importance that consumers in the East Midlands are informed, confident and protected - especially when it comes to borrowing money.
“Finding out how much credit really costs is often complicated and misleading. It is absolutely essential that websites offering consumer credit online contain correct and complete information on the actual terms and conditions. It is essential that businesses comply with EU rules that were introduced to help consumers understand and compare credit offers.
“It is shocking that around 80% of websites checked in the UK do not fully comply with EU consumer credit rules and either do not include the standard information required in their advertisements, such as the annual percentage rate of charge (APR), omit key information on the offer, or do not explain fully the actual costs of undertaking a credit agreement.
“I urge the UK authorities to follow up these irregularities as quickly as possible and ensure that, in future, standard information on consumer credit will be made fully available on all UK websites."
National enforcement authorities are asked to report back to the European Commission by autumn 2012.
ENDS
Note to Editors:
Media contact:
Bill Newton Dunn, T: 0044 7939 250 473, bill.newtondunn@europarl.europa.eu
Ben Zaczek, Office of Bill Newton Dunn MEP, T: +32 (0) 228 47 712; ben.zaczek@europarl.europa.eu
